NYSE$EGP

EastGroup Properties Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

EastGroup's Q1 2020 performance reflected team strength and portfolio quality during a 'normal economic' period, with focus shifting to operations amidst economic pause.

EastGroup Properties reported a net income of $0.60 per share for Q1 2020, slightly lower than $0.62 per share in Q1 2019. Funds from Operations (FFO) increased by 9.2% to $1.31 per share, and Same Property Net Operating Income (NOI) rose by 1.7% on a straight-line basis and 3.7% on a cash basis. The company maintained high occupancy rates and increased rental rates on new and renewal leases.

  • Net income attributable to common stockholders was $0.60 per share, compared to $0.62 per share for the same period in 2019.
  • Funds from Operations (FFO) increased 9.2% to $1.31 per share, compared to $1.20 per share for the same period in 2019.
  • Same Property Net Operating Income (NOI) increased 1.7% on a straight-line basis and 3.7% on a cash basis.
  • Leased percentage was 97.3% and Occupied percentage was 96.7% as of March 31, 2020.

Headline financials

Total Revenue

$88.6M

Previous: $78.8M+12.5%
EPS (adj)

$1.31

Previous: $1.20+9.2%
Operating Portfolio Leased Percentage

97.3%

No prior period
Operating Portfolio Occupancy Percentage

96.7%

No prior period
Capital Expenditures

-$85.3M

Previous: -$48.5M-76.1%
Free Cash Flow

-$62M

Previous: -$71M+12.6%
Net Income

$23.3M

Previous: -$22.5M+203.4%
Operating Income

$84.3M

Previous: $74.2M+13.5%
Gross Profit

$88.6M

Previous: $78.8M+12.5%
Cash & Equivalents

$671K

Previous: $1.83M-63.4%
Total Assets

$2.6B

Previous: $2.17B+19.9%
Stock-Based Comp

$1.23M

Previous: $1.07M+15.1%

Revenue & EPS history

EastGroup · Revenue · Quarterly

$88.6M

Q1 2020+12.5%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

In light of the COVID-19 pandemic, EPS for 2020 is now estimated to be in the range of $2.07 to $2.19. Estimated FFO per share attributable to common stockholders for 2020 is now estimated to be in the range of $5.11 to $5.23.

Tailwinds

  • EastGroup's financial condition and balance sheet remain strong.
  • Company in compliance with its debt covenants and anticipates remaining in compliance during the foreseeable future.
  • EastGroup believes its last mile, shallow bay portfolio will be uniquely positioned to benefit from the anticipated shift towards carrying more inventory.
  • Incremental manufacturing in the U.S. or near shoring in Mexico, and a change in shopping patterns leading to increased e-commerce demand.
  • Company declared 161st consecutive quarterly cash dividend: $0.75 Per Share

Headwinds

  • COVID-19 did not have a material adverse impact on the Company’s revenues as monthly rent payments generally were due by early March, prior to the beginning of the more significant economic impacts in the United States.
  • Anticipate the impacts to be greater in future months.
  • Anticipates a decline in occupancy during the remainder of 2020.
  • Leasing prospects for the operating portfolio and development and value-add properties have slowed.
  • Does not anticipate starting construction on any new speculative development projects during the second quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.9%

Avg return

30 days after

55%

38 / 69 earnings

Positive

+7.8%

Q2 2020

Best reaction

-12.4%

Q1 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+0.7%+2.1%
Q4 2025+2.9%+4.9%+2.7%
Q3 2025-1.0%-3.0%+0.2%
Q2 2025+0.6%+1.9%+3.1%
Q1 2025+1.6%+1.6%+2.7%
Q4 2024+1.5%+4.0%+7.2%
Q3 2024-0.9%-2.1%-4.6%
Q2 2024-3.1%-2.2%-3.0%
Q1 2024-3.3%-4.5%-1.5%
Q4 2023+2.1%+2.3%+0.0%
Q3 2023+1.8%+1.6%+11.1%
Q2 2023-0.7%-5.4%-4.5%
Q1 2023-2.2%+0.2%-3.9%
Q4 2022-0.8%-2.5%-5.5%
Q3 2022+5.3%+8.2%+8.2%
Q2 2022-0.5%+3.4%+4.4%
Q1 2022-1.8%-8.9%-23.2%
Q4 2021+2.9%-1.9%-3.1%
Q3 2021+1.6%+2.7%+8.9%
Q2 2021-0.0%+0.2%-2.7%
Q1 2021+0.7%+1.5%+0.4%
Q4 2020-0.6%+0.2%-4.4%
Q3 2020-2.0%-1.9%+1.7%
Q2 2020+7.8%+6.9%+9.2%
Q1 2020-7.9%-5.5%+4.7%
Q4 2019+0.6%+2.0%-4.3%
Q3 2019+4.4%+3.9%+3.2%
Q2 2019+1.6%+2.6%+3.4%
Q1 2019+0.8%+2.0%+2.4%
Q4 2018+0.9%+1.8%+0.9%
Q3 2018+2.1%+1.9%+6.8%
Q2 2018-2.2%-2.8%+4.4%
Q1 2018-0.5%+0.7%+5.3%
Q4 2017+1.8%-3.2%-4.4%
Q3 2017-0.8%-3.0%+1.1%
Q2 2017+2.7%+2.4%+2.1%
Q1 2017+1.4%+1.2%+3.1%
Q4 2016-2.3%-0.7%+4.8%
Q3 2016-0.0%+0.5%-4.8%
Q2 2016-0.7%+0.1%+1.0%
Q1 2016-3.4%
Q4 2015-2.8%
Q3 2015+0.7%
Q2 2015+0.4%
Q1 2015-1.4%
Q4 2014-2.6%
Q3 2014+0.5%
Q2 2014-0.9%
Q1 2014+0.5%
Q4 2013-1.4%
Q3 2013+2.4%
Q2 2013+3.4%
Q1 2013+0.5%
Q4 2012+0.3%
Q3 2012-1.4%
Q2 2012-3.4%
Q1 2012+0.9%
Q4 2008+0.8%
Q4 2011+0.8%
Q3 2011-1.2%
Q2 2011-12.4%
Q1 2010-12.4%
Q1 2011+0.7%
Q4 2010+0.5%
Q3 2010+0.2%
Q3 2009+0.2%
Q2 2009+1.1%
Q4 2009+1.1%
Q2 2010+1.1%

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